Who will pay the costs incurred by regulated utility companies as they shift to competitive markets under plans engineered at the federal and state levels? This question is part of the debate over electric industry restructuring, but any payments lie in the future. For ratepayers in the gas market, however, the time has come. So far, state regulators have interpreted the law as prohibiting any sharing of gas market "transition" costs between shareholders and ratepayers.
Fortnightly Magazine - April 15 1995
Charles B. Yulish was named v.p., corporate communications, for the U.S. Enrichment Corp. Yulish previously was executive v.p. and managing director of the E. Bruce Harrison Co. He began his career with the U.S. Atomic Energy Commission.
Dan Bart was promoted to the new position of v.p., standards and technology, to serve both the Electronic Industries Association and the Telecommunications Industry Association. Bart will retain his current responsibilities with TIA.
Allen Arvig, president of East Otter Tail Telephone Co.
The North Carolina Utilities Commission (NCUC) has ruled that electric utilities who plan to market excess capacity via their own fiber-optic telecommunications facilities must either obtain certification as an interexchange telecommunications carrier or form a separate subsidiary that obtains such certification. The NCUC noted that interexchange certification was sufficient because competitive local exchange service was not currently authorized in the state.
In his article, "The Flawed Case for Stranded Cost Recovery" (Feb. 1, 1995), Charles Studness made many good points. Yet he omitted to mention one critical factor that influenced several utilities in the late 1970s to go ahead with new coal and nuclear capacity: the Carter Administration's 1978 Fuel Use Act, mandating that utilities cease burning natural gas by 1989.
For many companies operating in the south central United States, this requirement meant conversion or replacement of most existing capacity.
The Michigan Public Service Commission (PSC) has rejected a request for expedited approval of a special contract between Consumers Power Co. and a natural gas transportation customer, the James River Corp. Consumers Power negotiated the contract when it learned that James River could bypass the local gas distribution system through a direct connection with a nearby pipeline operated by Panhandle Eastern Pipe Line Corp. The utility claimed that James River could rescind the contract and arrange for bypass service if approval was not obtained by February 3, 1995.
Average generation costs for the nation's electric utilities fell in 1994, primarily due to reductions in delivered fuel prices. Production costs declined by 3.5 percent, averaging just $1.89 per kilowatt-hour (Kwh) by year's end.
The WSCC is the only NERC (North American Electric Reliability) region where production cost increased (em 2.6 percent in 1994 (em as reduced hydro output in California was replaced by more costly natural gas-fired generation.
The Florida Public Service Commission (PSC) has decided to expand interconnection for telecommunications switched-access service by requiring local exchange carriers (LECs) to offer virtual collocation services upon request. The PSC approved pricing flexibility in the form of zone density pricing for the new collocation tariffs.
There's a new gunslinger in town, and it's heavyweight PacifiCorp. The Pacific Northwest utility is opening a marketing office in Las Vegas to gain access to large customers that may come up for grabs if retail wheeling comes to Nevada and Southern California.
The Illinois Commerce Commission (ICC) has approved a $303.2-million rate increase for Commonwealth Edison Co. In approving a rate of return on equity (ROE) allowance of 12.28 percent, the ICC chose an ROE presentation that "equally weighs the quarterly DCF and risk-premium based results." The increase reflects the ICC's finding that the company's Byron 2 and Braidwood 1 & 2 nuclear generating facilities are fully used and useful and eligible for rate recovery.
fuel-transportation charge for natural gas supplies.